KEY TAKEAWAYS
Enjin Coin’s (ENJ) price increased by over 50% last week.
The price has broken down from a nearly 2,650-day support.
Is ENJ in a long-term bearish trend, or is there hope for a reversal?
The Enjin price has fallen since its all-time high in January 2021. This cycle’s price movement has been underwhelming since the gaming token did not reach its previous highs.
Instead, the ENJ price broke below its previous bear market lows and fell to its lowest price since 2020 before bouncing back last week.
Some positive news from Enjin last week may have spurred the increase. The team announced the Enjin Snap Challenge, which will continue until May 15 and reward 10 exclusive Non-Fungible Tokens.
On April 21, PlayTo-earn posted the top 10 highest-rated MMORPGs, and Enjin fuels two of them, highlighting its importance to the GameFi sector.
ENJ Price Breakdown
The weekly time frame technical analysis shows that ENJ has fallen by 98% since its all-time high of $4.847 in November 2021.
The decline culminated with a low of $0.059 in April 2025, the lowest price since March 2020. ENJ bounced afterward and increased by over 50%.
An extremely bearish development is the breakdown from a long-term ascending support trend line that has existed since the ENJ price launched.
The trend line had existed for nearly 2,650 days during the breakdown in January 2025. The breakdown means that Enjin’s bullish trend since launch has ended.
Technical indicators are bearish but provide some bullish signs. The bullish divergence of the Moving Average Convergence/Divergence (MACD) highlights the possibility of a reversal.
However, the indicator is still negative, and the Relative Strength Index (RSI) is falling. So, the weekly time frame still suggests the ENJ trend is bearish.
The next closest horizontal support is at $0.055.
What’s Behind the Bounce?
The daily time frame analysis shows that the ENJ price bounce caused a breakout from a descending resistance trend line.
The resistance has existed since December 2024, so its breakout indicates a bullish short-term trend.
However, the Enjin price created a long upper wick (red icon) after reaching a high of $0.115 on April 21.
The high validated the $0.115 horizontal resistance area and triggered a decline.
While the wave count suggests that ENJ completed a five-wave decline (red), it also shows a finished A-B-C structure (green).
It is still unclear if this marked the entire relief rally or wave A in a longer-term A-B-C structure.
Either way, the wave count suggests the long-term ENJ price prediction is bearish, and the current increase is simply a relief rally.
Enjin’s Bearish Trend
The ENJ price has been mired in a bearish trend since 2021, highlighted by this market cycle’s underwhelming performance.
ENJ confirmed its fate by breaking down from a nearly 2,650-day ascending support trend line.
The ongoing bounce is likely a relief rally that will eventually create a lower high and lead to new lows.
